Sacramento daily record-union., 1887-08-13
RAILROAD INVESTIGATION.
Further Testimony of S. T. Gage, and j.
c. Stubbs At Ycsterdaxts Meeting

RAILROAD INVESTIGATION.
Further Testimony of S. T. Gage, and j.
c. Stubbs at Yesterdays Meeting.
SAN FRANCISCO, August 12th.-At the resump-
ton Of the investigation Of the Central Pacific
Railroad affairs by the Federal Commission this
morning, Mr.. Cohen produced all the books of
the Contract and Finance Company up to the
date of its disincorporation, now in the posses
sion of the railroad company
me examination Cf 5. t. Cage Assistant to
PRESIDENT OF the S. 7. Co., was then recalled
and resumed his testimony On the stand and his
examination resumed by Mr. Anderson. In re-
sponse to questions, Mr.. Gage stated that he was
member of the Legislature from Placeryille
when youth, and had held Offices in both Ne
vada and California. He said he represented
the Central Pacific Company ut the California
Legislature from 1871 to 1879, alternating with
the Legislature of Nevada. He knew A. c.
Cleveland, who represented the local roads at
the Nevada Legislature, but that gentleman was
never his "ehief aid, nor had he ever given
MN any money to eXpend about the Legisla-
ture. Being asked if he had ever discussed the
use of money to influence legislation with Cleve-
land, Mr.. Gage became somewhat heated and
again denied that he had ever used any money
to bribe legislators in Nevada. Possibly may
nave talked over such matters with Cleveland j."
said he. " At that time the company was being
attacked by the so-called anti-railroad news
papers, and charges were made that Gage was
there with his sack, and that now the Legisla-
ture would be corrupted. Those charges may
have been discussed with Cleveland, but
never paid him any money whatever NV ex-
penses during the eight Years | represented the
central Pacific IN Nevada were s., 900, and if
anybody thinks the Legislature could be cor
rupted and the personal expenses of the cor
ruptor paid with that sum, he must think Ne
yada legislators come very cheap, and can be
be purchased by the string
Mr. Anderson asked the witness if he kept a
personal bank account.
Mr. Gage said he never kept IL personal ac-
count with himself. What money he received
he got honestly, and after paying
it out he forgot it soon as he could The
witness went on to give his reasons for this:
he did not care 10 hear the explanation.
MI Gage-l was only giving my reasons for
not keeping personal account.
Mr.. Anderson-Then you think YOU ought to
have reason for il?
Mr.. Gage-No, but you seem to think So
Mr.. Anderson did not ask you for an ex-
PLANTATION.
NJ Gage-No; but propose to explain when
the connection of your questions goes to show
that you think anything | do discreditable 1t
appears that am being attacked here and |
claim the right to defend myself
Mr. Anderson then proceeded to question the
witness relative to the vouchers by which he
drew money from the Central Pacific treasury,
| and pressed him to tell what he did with it.
Mr. Gage said he drew money often for differ
ent purposes, but he could not remember the
details. He gave list of the attorneys en-
ployed by the company from time to time
about the Legislature. He said in 1871 W. B.
Carr represented the company at Sacramento
and in 1874 w: W. stow did the same. He
had often conferred with these gentlemen
about legislation, and the means to be en-
ployed to defeat hostile bills, but he never rec
objected discussing propositions to disburse
money for the purpose of brlbing members of
the Legislature.
Mr.. Anderson-Mr. Gage would you consider
it corrupt to pay money to the friend of mem
Der OF the Legislature who had introduced a
hostile bill, for the purpose of changing his att-
tude upon the measure?
Mr.. Gage-I don't know. l never was placed
in that position.
Mr.. Anderson merely want your opinion.
Mr. Gage-If you want my opinion will say
yes. l should regard that as purchasing his
vote.
Mr.: Anderson then proceeded to ask the wit
ness II he had ever paid any money to a mem
Der OF the Legislature in California or Nevada
also, whether he ever paid money to any person
to be given TO members; also, whether he ever
knew of any money being distributed for such
purpose by any one connected with the Cen
tral Pacific Company.
Mr. Cohen said he had heretofore objected to
this line of questioning and to he consistent
should repeat his objection although he knew
the witness would answer all of the questions in
the negative.
Under advice of Cohen therefore, Mr.. Gage
declined to answer. Gentlemen" ne said " /
should like to answer all these questions but
must be guided by my attorney. | always fol-
low my attorneys advice. l never used money
to corrupt members OF the Legislature. That
was never my style of doing business
The next witness was ]. c. Stubbs, Traffic
Manager of the southern Pacific Company who
testified concerning the manner in which freight
tariff is made up and how the freight business
is conducted. He was asked if any favors had
ever been shown to Huntington Hopkins & Co.
| in matters of freight, and emphatically denied
that any such thing had ever been done. As
| to the question OF business being diverted from
| the Central to the Southern Pacific road witness
| said the Central and Union line had always
carried more than half of the freight and pas
sengers from the coast and in his Judgment al
ways would. The reason for this was obvious
| Mr.. Littler asked if the Central and Union
| lines was now carrying more than half the
| traffic.
| Mr.. Stubs said the books would show that
what he had stated had always been and was
| true. he did not think the Sunset route being
part water, would ever be able to overcome the
| manifest advantages of the all-rail lines. The
Union and Central was. in his opinion, the best
lines Tor freight transportation always had been
and always would. 1t was the shortest and the
quickest.
Referring TO the subject of competing lines
Mr.. Stubbs gave, at the request of Mr. LittIer.
list OF the competing lines to the Atlantic sea
board from this coast. There were ten lines to
| the East, viz: The Canada Pac fic copnectinp
with this city by the Pacific Coast STEAMSHIP,
Company steamers, and connecting at St Paul
with the Chicago and the Northwestern for Chi
cago and the East second the Northern Pacific
| line, connecting with San Francisco by the same
line OF steamers at Tacoma and thence to St
paul, where the same connection is made with
the Iowa roads; third, the Oregon short line,
connecting with this city by the Oregon Steam
Navigation Company's steamers, and in Oregon
with the same company s road to Granger, and
then with the Union Pacific to Omaha and then
with the Iowa system; fourth, the Central and
Union Pacific roads to Omaha; fifth the Cen
tral and Union Pacific to Ogden and the Denver
and Rio Grande to Denver, and then with the
missouri racine system east; SIXTH the Atlantic
and Pacific line to Molave and Albuquerque and
| by the Atchison Topeka and Santa Fe to Kansas
City, where 1t connects with the Iowa system ;
seventh, the Central Pacific to Goshen the
Southern Pacific TO Deming and via the Atchi-
son, Topeka and Santa Fe to Kansas City :
eighth, the Central Pacific to Goshen and the
Southern Pacific to FL Paso and via the Texas
Pacific to the Missouri Pacific system: ninth.
the Sunset route to New Orleans and by the
Morgan steamers to New York; tenth, the Pa
cific Mail route across the isthmus and the Cape
Horn route by sailing vessel. The last named,
he said, was the worst competitor of all /; in
fact, the transportation around the Horn was the
chief factor in determining overland tariffs.
The shortest line was that running via the Cen
tral and Union Pacific roads to omaha, the Chi
cago and Northwestern to Chic ago, and the
Pittsburg, Fort Wayne and Chicago and Penn
| sylvania Central to New York. Although the
shortest route, this line could not by any means
be most economically operated The heavy
grades on the Central and Union roads would
always Nt @ maze se neiT @ expensive but the
lead in traffic and probably always would
showed that they were greatly preferred by
shippers.
After some further testimony Mr.. stubbs was
asked, What effect has the making of pools
had on the general community g' He replied :
The effect is beneficial, Pools are supposed
to neutralize competition, but it does not de-
stroy it." Mr.. Stubs was asked many ques-
tions by Mr.. Pattison concerning advantages or
! disadvantages of pool making. The answers
given were favorable to the pooling system, as
being beneficial to both shippers and transpor-
tation companies, provided the rates agreed
upon were honestly maintained.
Adjourned till tomorrow.
THE GLACIERS OF ALASKA